Decent Work Profile Indonesia Experience Sugiarto Sumas Ministry of Manpower and Transmigration Republic of Indonesia Head of Board, Reseach Development and Information Board Ministry of Manpower and Transmigration, Republic of Indonesia Global Conference Measuring and Monitoring Progress on Decent Work ILO/EC Project Monitoring and Assessing Progress on Decent Work (MAP) Brussels, Belgium, 18-19 November 2013
Acknowledgements We would like to appreciate and thank to the ILO and the European Union develop Decent Work Country Profiles in Indonesia under the ILO/EC Project Monitoring and Assessing Progress on Decent Work. The profile provides key information for designing and monitoring Decent Work Country Programme and represent a tool to mainstream decent work into National Development Plan. Actually, decent work is not something new for us. In our constitution 1945, every citizen shall have the right to work and to earn a humane livelihood. Based on our constitution, the regulations concern the mainstream of decent work. The 1945 Constitution of the Republic of Indonesia, Chapter X Article 27(2) : Every citizen shall have the right to work and to earn a humane livelihood.
Contents 1. Geograph and Demography of Indonesia 2. Economic and social context for decent work 3. Decent work profile 4. Effort to improve decent work profile 5. Conclusion
China India INDONESIA POPULATION at 2012 : 246.86 1,350,695,000 1,236,686,732 United States Indonesia Brazil Brussel 313,914,040 246,864,191 198,656,019 Indonesia, officially the Republic of Indonesia, is a sovereign state in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 17,508 islands. It encompasses 34 provinces with over 246 *million people, making it the world's fourth most populous country. Indonesia's republic form of government comprises an elected legislature and president. The nation's capital city is Jakarta. Indonesia is a founding member of ASEAN and a member of the G-20 major economies. The Indonesian economy is the world's 16th largest by nominal GDP. *revised (Source: http://en.wikipedia.org/wiki/indonesia) Indonesia Map Source: Google Maps
Economic and Social Context for Decent Work GDP PER CAPITA (Growth Rate, %) 2001 : 2.3 2009 : 3.4 2012 : 4.8 POVERTY RATE (%) 2001 : 18.40 2010 : 13.40 2012 : 11.96 Economic and EXPENDITURE BASED PROD.UCTIVITY Social INEQUALITY Context for (Growth (percentile rate P90/P10, %) 2001 : Rate, 2.5 %) 2010 : 2.8 2001 : 11.0 LABOUR 2012 : 5.1 2009 : 7.0 Decent Work EMPLOYMENT BY ECONOMY ACTIVITY(%) 2001 2010 2011 2012 Agricul -ture Manufacture Services 43.8 38.3 35.86 35.09 18.7 19.3 20.60 21.67 37.5 42.3 43.54 43.24 Map Source: Google Maps
and, How about Indonesia Decent Work Profile Map Source: Google Maps
The Activities, Main Result under MAP in Indonesia and Way forward The Identification of DWI Improvement of Data Collection tools National assessment on DW DWCP Map Source: Google Maps
The Identification of DWI Improvement of Data Collection tools National assessment on DW DWCP The Identification of DWI: National Stakeholder and Tripartite constituens have been involved every stage to select the indicator as a basis for preparation DWCP The Whole process was led with the ILO/MAP guidance Dialogue at all stage prosess has been a key factor for ensuring ownership Result : A Core list of 11 priority DWI s among the 70 indicators identified for monitoring purposes particularly on the National Development Plan, through voting process The list of 11 priority indicators: 1. Economical and social context 2. Employment opportunities 3. Adequate earnings and productive work 4. Decent hours 5. Combining work, family, and personal life 6. Work that should be abolished 7. Stability and security of work; 8. Equal opportunity and treatment in employment 9. Safe work environment 10. Social security 11. Social dialogue, workers and employers representation
The Identification of DWI Improvement of Data Collection tools (1) National assessment on DW DWCP Census, Surveys Data Labour force and employment-related issues National Statistics of Indonesia (BPS) Administrative records Administrative sources: MoMT MoH MoE Central Bank of Indonesia ILO World Bank WHO DWI Fact: Data collection need to be improved The majority of nationally identified DWI s have been computed using existing survey data, but... They were no systematically computed by national statistical officers or not the basis of international statistical standards. Some indicators for which data were not available Administrative records is available, but need for improvement due to lack of effective coordination of national systems. through Improvement: Efforts have been made to improve compliance to international statistical standards. BPS has decided to broaden the scope of the Sakernas (LFS) to better measure DW, by including additional questions related to safe work environment, social security and social dialogue. A pilot-survey will be conducted in the August round of the Sakernas in 2014 MoMT has been developing national information systems for collecting manpower data in central, province, and regional level.
The Identification of DWI Improvement of Data Collection tools (2) National assessment on DW DWCP Census, Surveys Data Labour force and employment-related issues National Statistics of Indonesia (BPS) Administrative records Administrative sources: MoMT MoH MoE Central Bank of Indonesia ILO World Bank WHO DWI The availability of data is used to be more usefull and more benefits Way forward: Developing integrated information system for DW data Why? DWI s derive from a variety of data sources. They are stored in disparate -and typically unconnected- spaces across multiple agencies and ministries, which undermine their availability and usability for policymaking. Benefits: The integrated information system for decent work data, together with a clear management structure and division of responsibilities, would make DW data both more accessible and more relevant to stakeholders in the world of work. The national Decent Work Indicators Information System (DWIIS) will provide a regularly updated database of DWI that can be accessed online by all stakeholders in the world of work, including government agencies, employers and trade unions. This action is currently discussed and an agreement between BPS and MoMT over management responsibilities is sought.
The Identification of DWI Improvement of Data Collection tools National assessment on DW DWCP Fact: Use of data to comprehensively measure progress across the decent work landscape has been limited. Having a quarterly labour force survey and a strong national statistical office (BPS), Indonesia benefits from a comparably robust and timely system of national labour statistics. Within this framework, the country already has the capacity to produce a wide range of decent work indicators on a regular basis, for use in policymaking and development planning. However, to date, use of such indicators to comprehensively measure progress across the decent work landscape has been limited. http://www.ilo.org/wcmsp5/groups/public/--- dgreports/---integration/documents/publication/ wcms_167418.pdf Efforts: 1. The development of a national DWCP for Indonesia was proposed to help operationalize Indonesia s vision for a stronger statistical and analytical basis for policymaking on decent work. 2. The MAP project has provided financial and technical support to the government, employer association and trade union in the development of the country s first Decent Work Country Profile. 3. Developing Decent Work Profiles in 3 Provinces 4. Sectoral analysis of decent work indicators
The Identification of DWI Improvement of Data Collection tools National assessment on DW DWCP http://www.ilo.org/wcmsp5/groups/public/--- dgreports/---integration/documents/publication/ wcms_167418.pdf Summary of Decent Work Country Profile (1): Steady progress in raising per capita income. Significant achievement in poverty alleviation, but poverty rates still high in many parts of the country and inequalities remain important. Employment mainly distributed in agricultural an services sectors, share in manufacturing increased. Labour productivity increases at 3.3% per annum over the last decade. Percentage of children not in education reduced significantly Progress on gender perspective: female LFPR increased, female unemployment rate decreased, and female informal employment decreased. Progress on decent hours not achieved. Percentage of employed people work > 48 hours a week increased and about 75% regular employees and half of casual employee work > 40 hours a week Law no. 23 year of 2002 on child protection adopted. Child labor, aged 10-17, decreased in 2010. Forced labor: efforts to eliminate trafficking in person, especially women and children, are included in legal frameworks and in many government regulations and plan of action as well.
The Identification of DWI Improvement of Data Collection tools National assessment on DW DWCP http://www.ilo.org/wcmsp5/groups/public/--- dgreports/---integration/documents/publication/ wcms_167418.pdf Summary of Decent Work Country Profile (2): Manpower Act No. 13/2003 contains provisions for termination of employment on basic grounds and for severance payment. Equal opportunity and treatment in employment, rises in the share of women participation in politics and management, but falling in gender wage gap among regular employee. Safe work environment. Enforcement on occupational regulation had been delegated to regional following Law on regional government. Employment injury benefits are provided by Law on Social Security. Social security coverages extend to include self-employment and informal employment. Law no. 40 on National Social Security System adopted. Mandates universal coverage of social security with compulsary constributions and different programs (health insurance, work accident insurance, old age pensions, pensions insurance and life insurance), but not unemployment insurance. Social dialogue, and employers and workers representation. Collective labour agreement increased and incidences of strikes and lockouts were on the increase, the number of workers involved tended to be
then, What does Indonesia do to improve Decent Work Profile Map Source: Google Maps
National Policy National Policy Four Priorities of MOMT Decent Work
National Policy 11 National Priorities from Second United Indonesia Cabinet 2009-2014 Other Priorities 1. Reform of the Beureaucracy And Governance 2. Education 3. Health 4. Reducing Poverty 5. Food Security 6. Infrastructure 7. Investment Climate And Business Climate 8. Energy 9. Environment and Management of Natural Disasters 10. Left-Behind, Frontier, Outermost, Post-Conflict Areas 11. Culture, Creativity, and Technological Innovation 1. Politics, Law dan Security 2. Economics 3. People Welfare
National Policy Four Priorities MOMT National Development on National Midterm Development Plan 2010-2014 1. National Priorities No. 4: Reducing Poverty. MoMT policy in reducing poverty through : a. Placement and expansion employment opportunities; b. Labour security and labour inspection development system. 2. National Priorities No. 7: Investment Climate and Bussiness Climate. MoMT policy in supporting Investment Climate and Bussiness Climate through : a. Improvement of labour regulation ; b. Synchronization between central and regional policies; c. Strengthening industrial relations institutions 3. National Priorities No. 10: Left-Behind, Frontier, Outermost, and Post-Conflict Areas MoMT policy in supporting Left-Behind, Frontier, Outermost, and Post-Conflict Areas through : a. Area transmigration development; b. Area and community transmigration development. 4. Other National Priority(Economic) MoMT policy for increasing economy through: a. Improvement in services and protection of Indonesian Manpower during preperation, departing, and arriving process; b. Improvement in services and protection of Indonesian Manpower abroad.
Legal Framework POST MAP 2010 1. Employment opportunities Developing manpower planning Enhancing the competitiveness and labour productivity Public service standard Facilitating Indonesia migrant worker 2. Adequate earning and productive work Minimum living cost components Minimum wages 3. Decent hour Working hour and rest in specific sector 4. Combining work, family and personal life Exclusive breastfeeding 5. Stability and security of work Labour agreement Outsourcing 6. Safe work environment Health and safety management Guidelines for occupational injuries settlement Labour inspection 7. Social security National social security providers (BPJS) Aid Recipient Assistance for those affected by termination of employment 8. Social dialogue, employers and workers' representation Member of tripartite Registration of Collective labour agreement and company regulation 9. Administration record Public information service Manpower information report Labour inspection information network
Conclusion Indonesia has got the benefit of MAP Project in developing decent work country profile which is a tool for policymaking. We think, the MAP Project would be broaden to other country. We would to expect the ILO/EC continues technical assistant for Decent Work Agenda and its related projects.
Thank you For further information: Sugiarto Sumas (sugiartosumas@nakertrans.go.id) Hengky Irzan (henky_irzan@yahoo.com) Taofik Hidayat (taofik.hidayat@nakertrans.go.id)